HomeMy WebLinkAbout04-01-2013 Finance Committee
'CITY OF W April 1, 2013 - 5:30 PM
xj Annex Conference Room 1
WASH INGTQN' MINUTES
I. CALL TO ORDER
Chair John Partridge called the meeting to order at 5:30 p.m. in Annex
Conference Room 1 located on the second floor of the City Hall Annex at
One East Main Street in Auburn.
A. Roll Call
Chair John Partridge, Vice Chair Largo Wales and Member John
Holman were present.
City officials and staff members present included: Public Works
Director Dennis Dowdy, Finance Director Shelley Coleman, City
Attorney Dan Heid and Deputy City Clerk Shawn Campbell.
Also present was Scot Pondelick
B. Announcements
There was no annoucnement.
C. Agenda Modifications
Resolution No. 4932 was removed from the agenda.
II. CONSENT AGENDA
A. March 18, 2013 Minutes
Vice Chair Wales requested City Attorney Heid research the usage of
the Golf Course by high school students at no fee and report back to
the Committee.
Vice Chair Wales moved and Member Holman seconded to approve
the March 18, 2013 minutes.
MOTION CARRIED UNANIMOUSLY. 3-0
B. Claims Vouchers (Coleman)
Claims check numbers 421291 through 421591, in the amount of
$1 ,320,530.11 and dated April 1, 2013.
Vice Chair Wales moved and Member Holman seconded to approve
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and forward claims and payroll vouchers to the full Council for
consideration.
MOTION CARRIED UNANIMOUSLY. 3-0
C. Payroll Vouchers (Coleman)
Payroll check numbers 533690 through 533721 in the amount of
$283,042.12 electronic deposit transmissions in the amount of
$1 ,260,268.29 for a grand total of$1,543,310.41 for the period
covering March 14, 2013 - March 27, 2013.
Please see claims vouchers above for action on payroll vouchers.
III. RESOLUTIONS
A. Resolution No. 4916 (Coleman)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the transfer of funds for the purpose of making a loan or
loans from the Cumulative Reserve Fund to the Golf Course Fund for
up to a three-year period of time
Director Coleman presented the two proposed options for Resolution
No. 4916. The Enterprise Fund Loan will sunset at the end of 2013.
Both options will require the Golf Course Fund to repay $50,000.00 of
the loan by the end of 2013. Option one requires one balloon payment
and option two allows for monthly installments.
Chair Partridge stated the City must implement a repayment plan
before the loan sunsets. The Washington State Auditors office has
recently issued findings for municipalities with outstanding interfund
loans where the enterprise fund has not attempted repayment. The
Golf Course needs to be responsible for the debt. Option two gives the
Golf Course more working capital through the year and allows the Golf
Course to manage their funds throughout the year with the knowledge
they have a monthly payment. The fund may be able to sustain the
monthly payment and the City would not have to make the permanent
transfer. Option two shows the Auditor the City is treating this as a
loan. Chair Partridge stated the Council needs to develop best
practices regarding interfund loans so as the Golf Course requires
additional funds the debt is kept in the forefront of the discussion
making process. The City has other options available besides paying
off the loan. The Council will have to reconsider this loan and the
enterprise fund as a whole at the end of the year.
Director Coleman stated the City could not sell the Golf Course at this
time. The building was paid for with General Obligation Bonds, that are
tax exempt for an additional three years. The City could refund or
prepay the debt at that time. The Finance Department will be
reevaluating the amount of the debt that the Golf course can repay at
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the mid term budget adjustment. Director Coleman responded to a
question regarding best practices that the Councilmembers need to
look at the enterprise fund and see if the fund can afford the level of
payment. If the fund cannot, the Council would need to reevaluate the
repayment of the loan. The Auditor's Office does not typically allow
interfund loans to be extended beyond three years. The Golf Course is
focusing on promotion. The staff is aware of the debt and they are
attempting to reduce expenses.
Member Holman questioned if the Golf Course has sufficient revenue
each month to pay the proposed monthly payment. The loan is an
interfund loan that the City is responsible for; if the Golf Course fund
does not have the revenue to pay the debt, the City as a whole is still
responsible for the debt.
Vice Chair Wales questioned who was responsible for the budget at
the Golf Course. The City should be aggressive with Enterprise Funds.
The Golf Course does not have the additional funds to pay back the
loan nor can the City expect there to be more revenue to work with
than last year.
Member Holman moved and Vice Chair Wales seconded to approve
and forward Resolution No. 4916 option one to the full Council for
consideration.
MOTION CARRIED. 2-1 Chair Partridge voted no.
IV. DISCUSSION ITEMS
A. Ordinance No. 6460 (Coleman)
An Ordinance of the City Council of the City of Auburn, Washington,
amending Sections 8.08.070 and 8.08.140 of the Auburn City Code
relating to solid waste disposal
Director Coleman presented Ordinance No. 6460. She said the
Ordinance is an extension of the Solid Waste agreement. This would
allow the Auburn City Code to be in line with the interlocal agreement.
Member Holman requested a report of the discussion at Municipal
Services Committee.
Chair Partridge said there was not a lot of discussion. It was
understood this ordinance is a clean up ordinance to ensure the
Auburn City Code matches the interlocal agreement.
B. Resolution No. 4928 (Coleman)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the city to apply for and, if awarded, to accept grant funds
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in the amount of $300,000.00 from the Federal Aviation Administration
and the Washington State Department of Transportation, Aviation
Division, to seal coat airport apron areas, runway and taxiway surfaces
for the Auburn Municipal Airport and authorizing the execution of the
grant agreement therefor
Director Coleman said Resolution No. 4928 is a Federal Grant from
the Federal Aviation Administration for the seal coating portions of the
airport runways. The grant is for 90% of the cost. The City expects to
receive a minimum of 2.5% from Washington State Department of
Transportation.
C. Resolution No. 4929 (Coleman)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the City to apply for, and if awarded, to accept grant funds
in the amount of $70,000.00 from the Federal Aviation Administration
and the Washington State Department of Transportation, Aviation
Division, to prepare an airport wildlife hazard assessment for the
Auburn Municipal Airport and authorizing the execution of the grant
agreement therefor
Director Coleman said Resolution No. 4929 is a Federal Grant from
the Federal Aviation Administration for a wildlife hazard assessment.
The grant is for 90% of the cost. The City expects to receive a
minimum of 2.5% from Washington State Department of
Transportation. The City may have additional expenses from the
findings of the assessment.
Vice Chair Wales confirmed the amount for the expected funds was
based on expected funds received from the Washington State
Department of Transportation.
D. Resolution No. 4930 (Held)
A Resolution of the City Council of the City of Auburn, Washington,
approving placing the King County County-wide 2014-2019 Medic
One/Emergency Medical Services (EMS) levy on the ballot
City Attorney Heid presented Resolution No. 4930. State law requires
each jurisdiction with a population over 50,000 to endorse putting the
measure on the ballot.
Chair Partridge noted the rate is actually $.335. The rate is slightly
higher than previously assessed but based on home values the cost to
the individual homeowner will actually be reduced.
E. Resolution No. 4931 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor to accept a federal grant to be administered
through the Washington State Department of Transportation for the
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accidents. He also sees the cost to the City without the promised
benefits. He said for the cost of the Redflex contract the City could pay
for a lot of police overtime and target problem areas.
Chair Partridge said he also has concerns regarding the cost of
Redflex. He questioned if the City could provide an additional officer
purely devoted to patrolling school zones and busy intersections. He
added he does like that the City added the cameras to school zones
since they were not there originally.
Director Dowdy said in the first two years the City was able to
generate revenue that was used for traffic calming measures.
Director Colman noted the agreement will go back to the Municipal
Services Committee with additional information from Redflex and a
report that the Finance Committee is not in support of continuing the
Redflex contract. If the contact is not renewed Redflex will be
responsible for removing the cameras and repairing the concrete.
G. Public Works Consultant Agreement No. AG-C-431 (Dowdy)
City Council to grant permission to enter into Consultant Agreement
No. AG-C-431 with FCS Group, Inc. for the Water, Sewer, and
Stormwater Cost of Service Rate and Charge Study
Director Dowdy stated the Public works Committee pulled this item
from the Council agenda so they could spend additional time working
on the scope of services.
Chair Partridge asked if there is a legal requirement to do this study.
Director Dowdy said there is no legal requirement. The Council
directed staff to conduct this study during the last rate adjustment.
Chair Partridge questioned what the potential benefits of the study.
Director Dowdy said one customer class maybe subsidizing a different
customer class. This study will give the City a true cost of services for
each customer class. The last study was completed in 2000.
Director Coleman said the City did a rate study in 2012. This study is a
cost of service study which provides the City with different kind of data.
V. ADJOURNMENT
There being no further business to come before the Committee, the meeting
adjourned at 6:35 p.m.
APPROVED this 15th day of April, 2013.
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Jo n Partridge, Chair Shawn Campbell, Deputy City Clerk
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